Consolidated Industries is a diversified manufacturer with business units organized as divisions, including the Reigis Steel Division. Consolidated monitors its divisions on the basis of both unit contribution and return on investment $($ROI$),$ with investment defined as average operating assets employed. All investments in operating assets are expected to earn a minimum return of $12\%$ before income taxes.

Reigis$$s cost of goods sold is considered to be entirely variable; however, its administrative expenses do not depend on volume. Selling expenses are a mixed cost with one$-$third attributed to sales volume. The $2022$ operating statement for Reigis follows. The division$$s operating assets employed were $$332,000,000$ at November $30,2022,$ unchanged from the year before.

REIGIS STEEL DIVISION

Operating Statement

For the Year Ended November $30,2022$

$(000$s omitted$)$

Sales revenue $ $186,000$

Less expenses:

Cost of goods sold $ $96,000$

Administrative expenses $19,000$

Selling expenses $16,200131,200$

Income from operations, before tax $ $54,800$

Required:

$1.$ Calculate Reigis Steel Division$$s unit contribution if it produced and sold $3,000,000$ units during the year ended November $30,2022.($Round your answer to $2$ decimal places.$)$

$2.$ Calculate the following performance measures for $2022$ for Reigis:

a$.$ Pretax ROI, based on average operating assets employed. $($Round your answer to $2$ decimal places.$)$

b$.$ Residual income $($RI$),$ calculated on the basis of average operating assets employed. $($Enter your answer in whole dollars, not in thousands.$)$